Ethereum: Can this $16.46M whale action help ETH recover?

• ETH dropped below $2k again after remaining above this level for two days.
• Ethereum buyers were aggressively buying, with a negative netflow hitting 150,000 ETH.

Over the past three days, Ethereum [ETH] saw a shift in fortunes, reclaiming $2k. Amidst this trend reverse, is a higher activity from the buy side.

According to CryptoQuant, Ethereum saw a negative netflow of over 150,000 ETH on derivative exchanges.

Source: CryptoQuant

Such a large outflow indicates reduced selling pressure as investors move ETH to cold storage or DeFi. Therefore, the large outflow indicates increased accumulation by large entities signaling bullish sentiments from these investors.

This accumulation by large entities is further evidenced by the recent whale-buying activity.

As per Onchain Lens, a whale withdrew 8,313 ETH worth $16.46 million from Binance after two months of inactivity. After this transaction, the whale now holds 11,197 ETH worth $22.17 million.

Source: Onchain Lens

When whales begin accumulating, it signals strong bullish sentiment, indicating they believe current prices are undervalued and likely to rebound soon.

Sustained accumulation by smart money often boosts market confidence, attracting increased demand from speculative buyers.

What it means for ETH

Despite the rising demand from large holders, ETH prices continue to struggle.

In fact, on daily charts, ETH has dropped below $2k again, hitting a low of $1,963. This suggests that other market participants remain bearish and are less optimistic about potential price recovery.

Source: CryptoQuant

AMBCrypto observed bearish market sentiment as Ethereum’s Fund Market Premium stayed negative throughout the past week. 

A sustained negative premium indicates that investors are closing positions faster than new buyers are entering, suggesting a preference to sell at a discount rather than hold. While buyers are participating, seller activity remains notably high.

Source: CryptoQuant

Bearish sentiments are particularly pronounced among U.S. institutional investors. The Coinbase premium index, currently at -0.05, indicates active selling by Coinbase investors, reflecting a notable lack of market confidence.

This sentiment places Ethereum under significant downward pressure.

Despite increased negative netflows and whale accumulation, Ethereum’s demand remains weak. The ongoing tug-of-war between buyers and sellers may keep ETH prices confined to a consolidation range.

Under current conditions, Ethereum is likely to trade between $1,862 and $2,100.